In reality the 2016 referendum on European Union membership will impact every single area of business and personal life in the UK, one way or another. The task of unpicking a relationship that began more than 40 years ago will be a challenge to say the least. One area which has come under scrutiny of late is personal injury claims and how the sector may be impacted by Brexit.
Concern Among The Legal Sector
The UK government has already indicated it will replace many EU acts of law with similar UK acts after the divorce from the European Union; which is expected to be finalised in 2019. However, there is great concern among the legal sector that various loopholes may be created, the UK government may impact consumer rights with new personal injury claim regulations and confusion could have a significant impact upon sector activity. It is fair to say that negotiations between the UK government and lawyers operating in the personal injury claims market have been ongoing since 2016 but so far no firm agreement has been reached.
EU Directives Regarding Personal Injury Claims
You will no doubt have come across the term “EU directive” in numerous media articles. This is effectively a legal act of law passed by the European Parliament which simply bypasses member state Parliamentary approval. In effect, each EU directive issued or tweaked will immediately become law in all EU member states. This obviously reduces the need for complicated individual national government approval and ensures that EU member states operate under the same regulatory framework.
Personal Injury Claim Related EU Regulations And Directives
There are a number of issues to take into consideration with regards to potential changes after Brexit which include:-
- European Health Insurance Card Scheme
Many people will be aware of the European Health Insurance Card Scheme, which provides access to healthcare when visiting other European countries, with or without travel insurance cover. This is obviously a vital element of protection when travelling overseas, ensuring that important medical treatment, potentially life-saving, will be available to all UK citizens. However, many people may not be aware of the “Sixth Directive” which is there to protect all EU member passport holders.
The “Sixth Directive” ensures that those who are involved in an accident with an uninsured driver will have the right to make a claim in their home country. For example, a UK citizen on a temporary visit to a European state who was injured by an uninsured driver would be able to make a claim through the UK based Motor Insurers Bureau. This body is funded by a relatively small percentage of each motor vehicle insurance premium collected in the UK. It is an insurance industry body and has paid out literally millions of pounds over the years although it is unclear where UK citizens would stand in the future, post Brexit, in the event of an accident overseas.
- Health and Safety at Work Act 1974
The Health and Safety at Work Act 1974 is to all intents and purposes a catchall act which obliges employers to ensure the well-being of their employees and customers. In many personal injury claims this act is central when attempting to prove negligence by an employer. While there are many legal obligations afforded to each employer in the UK, and indeed across the European Union, they include issues such as:
- Initial and ongoing training
- Supply of safety equipment
- Supply of safety clothing
- Regular risk assessments for potentially dangerous activities
- The erection of warning signs
- Ensuring a safe and secure working environment
In reality the UK government has already indicated that the vast majority of European Union laws will be transferred to the UK statute books but under UK control. As the Health and Safety at Work Act 1974 is a vital element of not only the personal injury claims market, but also the employment market as a whole, it is unlikely we will see any major changes in this area.
- Consumer Protection Act 1987
Even though many European Union acts of law appear to be UK based, the Consumer Protection Act 1987 was in fact brought in by the European Union back in 1985. This ensures that those acquiring goods and services right across the European Union are protected in the event of negligence or substandard products/services. At this moment in time it is unclear what kind of direct relationship, if any, the UK will have with the European Union post Brexit. Therefore, it is also unclear what level of protection the Consumer Protection Act 1987 would afford to UK residents visiting other European Union member states and encountering some form of negligence or substandard product/service.
It also prompts the question, in the new digital age, where would UK consumers stand after acquiring defective products from companies based in an EU member state?
Will Common Sense Prevail?
When you bear in mind the number of UK citizens who visit European holiday destinations on a regular basis, it is inconceivable to think that the UK government will in any shape or form reduce cover for citizens travelling overseas. Whether we see the creation of a new working relationship with regards to personal injury claims, also involving EU residents visiting the UK, remains to be seen. It is also hard to believe that the UK government would look to reduce the protection of UK consumers on UK soil. However, the issue regarding overseas protection does need to be addressed as soon as possible.
Vulnerable Road Users And Personal Injury Reforms
There is growing support in parliament for a motion to exempt vulnerable road users such as cyclists, pedestrians, motorcyclists and horse riders from new personal injury claim reforms. At this moment in time vulnerable road users will be unable to access a state funded lawyer when pursuing a personal injury compensation claim with a value of less than £5000.
While the introduction of new regulations will always involve tweaking of the fine print, the main concerns regarding vulnerable road users surround the fact that:
- Very few claim for any form of whiplash.
- There is no evidence to suggest significant numbers of fraudulent or frivolous claims.
- Misrepresentation of their claim could result in a questionable result in court.
So far the UK government has yet to respond to concerns regarding vulnerable road users and incoming changes to the personal injury claims regulatory structure. Whether or not common sense prevails in this particular instance remains to be seen but it does look as though, at least from a distance, the government is in some ways using a sledgehammer to crack a nut.
Time Is Running Out
Changes to the regulatory structure of the person claims injury market are likely to come into force during 2019. Therefore, there is still ample time to introduce amendments to the act to offer a greater degree of protection to those classed as vulnerable road users. The growing campaign within the Houses of Parliament has grabbed many headlines and in reality it is fairly simple to introduce amendments and exemptions.
This is unlikely to be the only quirk which emerges from the proposed new regulatory system for the personal injury claims market.
Confusion Plays Into The Hands Of Fraudsters
The quicker the UK government is able to confirm Brexit related amendments regarding personal injury claims, especially those on European Union land, the better for everybody. Any degree of confusion opens potential loopholes in the law which will no doubt be exploited by the still large band of fraudsters operating in the industry.
As an example; just lately the UK government has been forced to crack down on holiday personal injury claims, amid concerns UK holidaymakers are being excluded from certain holiday destinations, which perfectly illustrates the opportunistic attitude of rogue advisers. In theory the UK government should only need to replicate relevant European Union laws on the UK statute books, but is it really as simple as that?
Conclusion
It will be interesting to see how the UK government tackles the issue of personal injury claims in light of Brexit changes and issues regarding vulnerable road users. Nobody in the industry would argue that change was not required, the Ogden rate was out of date and the system was under attack from fraudulent claims, but there is still a lot of work to do. Concerns that the government could in some way use changes post Brexit to reduce consumer protection and the right to claim compensation would appear to be speculative at best.
We can only hope that the protection offered by current personal injury claims regulations are strengthened for those pursuing valid claims and weakened for those involved in fraudulent activity.
